TopGum Signs Binding LOI to Acquire U.S. Operations and Expand into the Pharmaceutical Domain

Strategic Acquisition Includes Unique Manufacturing Operation for Pharmaceutical Gummy Dosage Forms and Establishes Long-Term Strategic Commercial Collaboration

SDEROT and RAMAT GAN, Israel, Jan. 21, 2026 /PRNewswire/ -- TopGum Industries Ltd. (TASE: TPGM), the leading company in the dietary supplements gummy dosage-form market, announced today that it has signed a Binding Letter of Intent (LOI) to acquire U.S. operations engaged in the manufacture of pharmaceutical products and dietary supplements in gummy dosage form.

The acquired operations represent the first in the world to achieve operational manufacturing capabilities for pharmaceutical-grade gummies containing active pharmaceutical ingredients (APIs). This transaction constitutes a major strategic leap for TopGum, enabling its entry into the pharmaceutical domain.

The seller is a leading U.S. company engaged in generic pharmaceuticals and a provider of development and manufacturing services in the health products sector, with extensive relationships with leading U.S. retail chains. The acquired activity incorporates a dedicated U.S. manufacturing facility with active production lines, a laboratory trials line, and infrastructure for capacity expansion. The facility complies with FDA requirements and, subject to a few months' certification process, shall also meet the requirements of the TGA, enabling expansion into the Australian market and additional ones.

Consideration for the acquisition shall include a cash payment of USD 12 million upon closing and the issuance of TopGum's shares to the seller valued at USD 13 million, based on a share price of NIS 13 per share. The transaction also incorporates contingent future consideration of up to USD 12 million, payable through the issuance of TopGum's shares subject to meeting certain sales targets.

As part of the LOI, the parties agreed to a long-term strategic collaboration for the commercialization of TopGum's dietary supplement and pharmaceutical gummy product portfolio. Furthermore, TopGum committed to act toward the appointment of one director to its board, to be nominated by the seller.

The acquired operations include several pharmaceutical gummy products with launches planned to begin in 2026. Notably, the seller has entered into an agreement with one of the world's largest pharmaceutical companies for the development of a gummy version of an existing drug with an estimated target market of USD 1.5 billion per year. This product, fully funded by the pharmaceutical partner, is expected to launch in the second half of 2027. The acquired operations maintain a development backlog estimated at approximately USD 60 million over the next two to three years.

Eyal Shohat, CEO of TopGum, said: "This is a significant milestone for TopGum, which facilitates our entry into the pharmaceutical domain with proven manufacturing capabilities and an advanced development pipeline. The collaboration with a U.S. leader positions TopGum at an excellent starting point for continued accelerated growth. I would like to thank our outgoing Chairman, Hagai Stadler, for his significant contribution to advancing and completing this transaction as part of his key role in transforming TopGum into a global leader".

Hagai Stadler, TopGum's Chairperson, added: "This transaction represents a strategic leap forward and a new chapter in the Company's life. Establishing a manufacturing foothold in the United States generates unparalleled value and positions TopGum at the forefront of the global industry. I thank the Company's management and Board of Directors for this significant milestone".

About TopGum

Established in 2004, TopGum is a leading manufacturer of dietary supplements in gummy dosage form with products sold worldwide. The Group's manufacturing facilities are located in Sderot, Israel, and in Canada, employing more than 400 people. In November 2025, the Company commenced commercial operations at a new advanced facility in Sderot. TopGum is listed on the Tel Aviv Stock Exchange (TASE: TPGM) and is jointly owned by founder Hai Hayoun, Roi Lusternik, and institutional investors. In April 2025, the Company completed the acquisition of Island Abbey, a leading Canadian gummy supplement manufacturer.

For more information, visit: https://tgum.com/ 

Contacts

TopGum Industries Ltd.
Nir Ogolnik, General Counsel & Company Secretary
Email: [email protected] 

Photo: https://mma.prnewswire.com/media/2866377/Eyal_Shohat_TopGum.jpg

SOURCE TopGum Industries Ltd.